Nestlé Nigeria swings back to profit of N39.6 billion in Q3 2025  

Nestlé Nigeria swings back to profit of N39.6 billion in Q3 2025

Nestlé Nigeria Plc has reported a strong rebound in its third quarter (Q3) 2025 results, posting a pre-tax profit of N39.6 billion, a sharp turnaround from the N2.9 billion loss recorded in the same quarter of 2024.

This took its nine-month pre-tax profit to N127.96 billion, compared to a loss of N255.38 billion recorded in the same period in 2024.

According to the unaudited results, the multinational food giant also posted healthy revenue growth across its two core segments.

Q3 2025 revenue grew by 17.5% YoY to N303.4 billion, up from N258.3 billion in Q3 2024.

This growth was largely driven by strong performance in the Food segment (Maggi, Golden Morn, Cerelac) and Beverages (Milo, Nescafé, Nestlé Pure Life).

For the 9-month period (Jan–Sep 2025), revenue rose by 32.9% YoY to N884.5 billion, compared to N665.3 billion in 2024.

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Key financial highlights (Q3 2025 vs. Q3 2025)

Revenue: N303.42 billion (+17.5% YoY)

Gross Profit: N101.92 billion (+29% YoY)

Operating Profit: N50.90 billion (+6.6% YoY)

Net Finance Cost: N11.34 billion (-77.6% YoY)

Pre-Tax Profit: N39.56 billion (vs. N2.86 billion loss)

Post-Tax Profit: N21.91 billion (vs. N7.36 billion loss)

Earnings Per Share (EPS): N27.64 (vs. -N9.28)

Total Assets: N847.30 billion (-1.3%)

Total Equity: -N19.70 billion (vs -N92.29 billion)

Drivers of the performance

Nestlé Nigeria’s Q3 2025 results were powered by a combination of resilient demand, effective pricing, and improved cost absorption.

The company reported a 17.5% year-on-year increase in revenue to N303.42 billion, supported by strong performance across its Food and Beverage segments.

Its flagship brands Milo, Maggi, Golden Morn, Cerelac, and others continued to enjoy solid consumer loyalty, allowing Nestlé to implement price increases without significant volume erosion.

This pricing power, coupled with better operational leverage, saw gross profit rise 29% YoY to N101.92 billion, ahead of revenue growth.

The gross margin expanded to 33.6% from 30.6%, reflecting disciplined cost management, production efficiency, and favorable product mix.

However, higher operating costs, particularly in marketing, distribution, and administrative expenses, moderated overall profitability at the operating level. Nestlé had to contend with rising logistics costs, increased promotional activity, and FX-driven cost inflation.

As a result, operating profit rose 6.6% to N50.90 billion, but operating margin slipped to 16.8%, down from 18.5% in Q3 2024, highlighting the pressure on margins despite strong top-line growth.